FX.co ★ Technical analysis of USD/CAD for January 8, 2014

General overview for 08/01/2014:

The counts up to Daily time frame have been re-labeled due to yet another high that has been made on this pair recently.
Starting from Weekly time frame, traders can see that the two possible target zones for wave Y brown are in view right now, but it is hard to determine which one zone will be the final one for now.
On Daily time frame the upside impulsive wave progression in last wave C blue of wave Y black is about to be finished. There are two possible targets that are in confluence on the higher time frame levels as well.
On H4 and H1 time frames we can see the upside wave progression in last wave up: wave 5 green. The sub waves are not fully developed yet and there is a high probability that the Very Important Resistance Zone will be hit BEFORE any substantial reversal or correction is made.  

Support/Resistance: 1.0873 - 1.0887 - Very Strong Confluence Zone 1.0841 - WR3 1.0782 - 1.0817 - Strong Confluence Zone 1.0783 - WR2 1.0735 - 1.0725 - Technical Support Zone 

Trading recommendations: Buy dips into yellow rectangle zone down to the level of 1.0783 waiting in anticipation for wave v black to the  upside.